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 PRICE ESCALATION ADJUSTMENTS

The Escalation Adjustment for the Aircraft will be determined by the following
formula:

 P(a) = P x ((L + M)/1.3665\* - 1)

 where:

 P(a) = Purchase Price Adjustment (includes the Engine price)

 L = 0.65 x ECI/130.1

 M = 0.35 x ICI/123.6

 P = Aircraft Base Purchase Price in July, 2004 Dollars

 ECI is a value determined using the U.S. Department of Labor, Bureau of
 Labor Statistics "Employment Cost Index for workers in aerospace
 manufacturing" (ECI code 3721), calculated by establishing a three-month
 arithmetic average value (expressed as a decimal and rounded to the
 nearest tenth) using the values for the fifth, sixth and seventh months
 prior to the month of the Scheduled Delivery Date of the applicable
 Aircraft. As the Employment Cost Index values are only released on a
 quarterly basis, the value released for the month of March will be used
 for the months of January and February; the value for June used for April
 and May; the value for September used for July and August; and the value
 for December used for October and November.

 ICI is a value determined using the U.S. Department of Labor, Bureau of
 Labor Statistics "Producer Prices and Price Index - Industrial Commodities
 Index", calculated as a 3-month arithmetic average of the released monthly
 values (expressed as a decimal and rounded to the nearest tenth) using the
 values for the 5th, 6th and 7th months prior to the month of the Scheduled
 Delivery Date of the applicable Aircraft.